Like-Kind Exchanges (IRC § 1031)
Deferring capital gains by reinvesting in like-kind property — careful planning and strict adherence to rules that, if missed, can disqualify an exchange.
For property owners, developers, investors, and real estate professionals across residential, multi-family, commercial, and industrial property types.
The real estate industry presents unique challenges and opportunities that require specialized knowledge. We understand the intricate financial, operational, and reporting matters that accompany real estate construction, development, holding and leasing, and transacting businesses.
The challenging part of advising and reporting on real estate transactions typically arises from improper or unavailable financial statements for decision-making and reporting. Much of the U.S. tax code has special provisions, exceptions, or treatment unique to real estate businesses and real estate professionals — traditional operating-business financial statements will not work, especially for multi-project and multi-year activities.
Computations for improvement value, land value, revenue recognition, expense allocations, depreciation and amortization, federal and state differences, tax credits and incentives, partner basis tracking, NIIT planning, cash flow management, tenant-landlord allowances, sale-leaseback accounting, and JV or partnership agreement tracking — among other tax-specific accounting needs — make the bookkeeping process a highly technical and specialized area.
Bookkeeping for real estate activities is no simple task. Most ledger-management tools are not designed with real estate transactions in mind — but with proper experience, technology, and technique, we streamline bookkeeping and financial reporting for tax, management decisions, creditors, and regulators.
A range of services addressing the challenges unique to real estate businesses. Common areas are below.
Deferring capital gains by reinvesting in like-kind property — careful planning and strict adherence to rules that, if missed, can disqualify an exchange.
Maximizing depreciation by properly classifying asset components, applying activity-grouping rules and elections.
Tiered-entity, partnership-level, and partner-level advisory, structuring, and planning for complex questions.
Identifying and securing real estate-specific credits and incentives to reduce tax burden and enhance after-tax profitability.
Strategies to minimize NIIT exposure and maximize after-tax returns.
Navigating lease agreements, including treatment of pass-through costs, for accurate accounting and tax reporting.
Assurance services meeting the requirements of regulators, lenders, and investors — transparency and compliance in reporting.
Schedule time with us to discuss your real estate portfolio and reporting needs.
Every engagement begins with a clear understanding of your needs, an honest assessment of mutual fit, and a defined scope of work.